Carmel Restaurant Improvement District

Carmel-by-the-Sea's restaurants have come together to form the Carmel Restaurant Improvement District, which began on January 1, 2019. Visit Carmel serves as the Owner's Association and works to develop and manage marketing programs that enhance the economic vitality of our diverse culinary community.

Here's what you need to know and do:

  • An assessment of 0.25% on gross food and beverage sales at all full-service restaurants in Carmel-by-the-Sea will be collected by restaurants and then reported and remitted to the City of Carmel-by-the-Sea on a quarterly basis. (By way of example, the 0.25% assessment amounts to 0.25¢ on a $100 guest check.)

     
  • Those funds will be remitted to the City of Carmel-by-the-Sea and then the City will provide the funds to Visit Carmel for management of a marketing program to drive business to the restaurants during slower periods.

     
  • Business Improvement Districts are designed, created, and governed by those who pay the assessment; and your participation is welcome. You can learn more in the CRID Management District Plan.

NOTE: All restaurants may pass the 0.25% assessment on to their guests at their discretion. It is not required that the assessment be passed through to the guest. The restaurant may instead choose to pay the assessment from its own revenue.

If a restaurant intends to pass the assessment on to the guest, here are the steps to take as part of the Carmel Restaurant Improvement District (CRID):

1. Update Point-of-Sale system

Each full-service restaurant may choose to pass the assessment on to a customer via the guest check. As of July 1, 2020, current sales tax is 9.25% in Carmel-by-the-Sea. The 0.25% assessment should be calculated on all gross food/drink sales, and then the assessment is included in the subtotal onto which the sales tax is calculated. Please adjust your POS systems to identify the 0.25% assessment as CRID ASMT and then list the SALES TAX amount.

Contact your point-of-sale system provider if you require assistance changing the sales tax rate and/or the description line.

2. Update Menus

If an assessment is being passed on to the guest, notice should be given to the guest in advance of the guest ordering. It is recommended that menus be updated to include this information (perhaps in small print at the bottom of a menu, where other notices such as "gratuity included for parties larger than 6"might be found, for example. Suggested language: All guest checks include a 0.25% assessment for the Carmel Restaurant Improvement District.

3. Display Signage

Alternatively, or in addition to updating the menus, restaurants may display signage that informs guests of the assessment collection. A small sign to display at a host stand or by the entrance, will be provided upon request to all Carmel-by-the-Sea restaurants.

4. Report & Pay Assessment Collection

On a quarterly basis, the City of Carmel-by-the-Sea will send a Carmel Restaurant Improvement District collection notice and worksheet. Please calculate the assessment revenue collected for each quarter and pay by check within 30 days. (See City's remittance schedule below.)

Remittance Schedule

Notes & FAQs

  • The Carmel Restaurant Improvement District applies to full-service restaurants within the City of Carmel-by-the-Sea (93921 zip code) only. This does not apply to restaurants located in unincorporated Carmel.

     
  • The assessment revenue collected IS considered taxable income by the California Department of Tax and Fee Administration (CDTFA).

     
  • If a restaurant collects the 0.25% assessment as part of the sales tax line, that assessment will then need to be separated from the 9.25% sales tax collection. So, on a quarterly basis the amount of sales tax you pay to the CDTFA remains at 9.25%. Do NOT pay the additional 0.25% to the CDTFA. Instead, you will receive a collection worksheet from the City of Carmel-by-the-Sea to calculate the amount due for each quarter.

     
  • Please consider informing your bookkeeper about the 0.25% CRID assessment for advice on bookkeeping processes.

     
  • A restaurant does not need to have both a notation on the menus as well as the signage. One or the other will suffice.
  • Passing the assessment on to the customer is done at the restaurant's discretion. It is possible that even if a restaurant has chosen to pass on the assessment, the customer may choose to opt-out of paying it. In this case, the restaurant is ultimately responsible for paying the assessment.

  • The assessment applies to gross food and beverage sales only, including to-go and delivery orders. Alternatively, if the guest is purchasing a service (i.e. a cooking class) or paying a room rental fee, then those non-food/beverage-related charges would be exempt from the assessment.

  • If a restaurant that is part of the CRID caters an off-site event, then that transaction would be exempt from the assessment. However, a private event held at the restaurant property (including a charitable event charged "at cost") would still be subject to the assessment.

  • All Visit Carmel and Restaurant Management Committee meetings are open to the public. Information about upcoming meetings, agendas and minutes may be found here.

Restaurant Management Committee

April Montgomery (chair) - Links Club
Greg Ahn (or rep) - Seventh & Dolores
Monique Black - Chez Noir
Anthony Carnazzo - Stationaery
Lorena Chaarani - Grill on Ocean Ave
Susan Dampier - Bud's and Brophy's
Janet Elarmo - Aubergine
Gian Pepe - Pepe International
Alyssa Ross - Il Fornaio
Sunny Shour - The Pocket
Ashley Wolff - Jeju Kitchen

Contact

For questions about Visit Carmel and/or Carmel Restaurant Improvement District program:

Amy Herzog
Executive Director of Visit Carmel
amy.herzog@carmelcalifornia.com
(831) 238-1849

For questions about assessment collection:

Jane Hogan
City of Carmel Finance Manager
jhogan@ci.carmel.ca.us
(831) 620-2041